Chesapeake Completes Sale of Corrugated Packaging Operations.

Business Editors

RICHMOND, Va.--(BUSINESS WIRE)--May 18, 2001

Chesapeake Corporation (NYSE:CSK) today announced it has completed the sale of its corrugated containers businesses, Chesapeake Packaging and Capitol Packaging. These former wholly owned Chesapeake subsidiaries, which consist of 10 corrugated container plants in seven states, become part of Inland Paperboard and Packaging, Inc., a subsidiary of Temple-Inland Inc. (NYSE:TIN).

Chesapeake Chairman, President and Chief Executive Officer Thomas H. Johnson said, "We are pleased to complete the sale of Chesapeake Packaging and Capitol Packaging. We believe the sale creates exciting opportunities for the employees going to Inland. This sale is one more step in our plan to become a more focused specialty packaging company, with an emphasis on markets that provide opportunities to differentiate our products and services through distinct competitive advantages."

Chesapeake plans to use the proceeds of the sale to reduce its long-term debt.

Temple-Inland Inc. is a major manufacturer of corrugated packaging and building products, with a diversified financial services operation.

Chesapeake Corporation, headquartered in Richmond, Va., is a global leader in specialty packaging. Chesapeake is a leading European folding carton, leaflet and label supplier and a leader in plastics packaging for niche markets. Chesapeake has 54 locations in North America, Europe, Africa and Asia. Chesapeake's website is www.cskcorp.com.

This news release, including comments by Thomas H. Johnson, contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The accuracy of such statements is subject to a number of risks, uncertainties and assumptions that may cause Chesapeake's actual results to differ materially from those expressed in the forward-looking statements including, but not limited to: the ability of the Company to complete divestitures in a timely manner and with adequate proceeds; competitive products and pricing; production costs, particularly for raw materials such as folding carton and plastics materials; fluctuations in demand; government policies and regulations affecting the environment; interest rates; fluctuations in foreign exchange rates; the ability of the Company to remain in compliance with its debt covenants; and other risks that are detailed from time to time in reports filed by the Company with the Securities and Exchange Commission.